Following South Africa's decision to trigger preferential trade as part of the free trade agreement with Egypt, sources from the latter country have highlighted the initial benefits of the nation's BRICS group membership.
This move signifies a fresh era of economic collaboration and paves the way for a surge in trade volume between Egypt and South Africa. The opportunities for cooperation are vast, particularly with Egypt's recent induction into the BRICS nations.
Official statistics from the Central Agency for Public Mobilization and Statistics reveal that trade exchange between Egypt and South Africa increased to approximately $217.1 million by the end of 2021, a 37% rise from the previous year. This includes Egyptian exports to South Africa, which jumped by 71.5% to $128.9 million in 2021.
South African investments in Egypt also soared, reaching around $74.6 million during the 2019/2020 fiscal year, a staggering increase of 600.5% from the 2018/2019 fiscal year.
The list of traded goods between the two countries features five key commodities, including plastics, fruits, inorganic chemical products, sugar and sugar products, and vegetable preparations from Egypt, and cars, tractors, bicycles, copper products, cast iron, various chemical products, and boilers and machinery from South Africa.
The African Continental Free Trade Area is set to launch on January 31. This historic step is expected to facilitate significant trade across the African continent, including countries such as Ghana, Egypt, Rwanda, and Tunisia participating in the Directed Trade Initiative.
Source: asumetech.com